NVIDIA Faces Delays in Launching China-Focused AI GPUs
NVIDIA’s plans to release new AI GPUs targeted at the Chinese market have hit a roadblock, as the company is reportedly facing integration issues with its H20 chip. The H20, along with other China-focused AI GPUs, is now facing delays in its launch, which could significantly impact NVIDIA’s position in the Chinese AI market.
The delay comes in the wake of the US ban on the export of NVIDIA’s AI GPUs, prompting the company to explore alternative strategies to cater to the Chinese market. Despite the imposition of export restrictions, NVIDIA announced plans to launch three new AI GPUs specifically designed for the Chinese market, including the H20 SXM, PCIe L20, and the PCIe L2.
However, industry sources quoted by Reuters have revealed that NVIDIA’s plans for the Chinese market have encountered a setback. The launch of the H20, which was initially rumored to take place in the middle of November, has now been postponed to the first quarter of 2024, with a tentative release window near February or March. While the L20 is still scheduled to release on time, there is no update on the L2 variant.
The delay in the launch of the H20 is attributed to compatibility issues with servers in the Chinese market. The chip is considered to be the highest-performing among the new Chinese variants and requires additional attention in terms of manufacturing. While NVIDIA is keen to maintain its position in the Chinese market and thwart competition, the delay in launching the H20 could prove to be a significant challenge for the company.
The setback has provided an opportunity for competitors such as Huawei, who are looking to capitalize on the newer export restrictions imposed on NVIDIA. Tech firms like Tencent and Baidu have expressed interest in employing Huawei’s Ascend AI chip for low-power AI tasks, signaling a shift towards in-house solutions. This poses a threat to NVIDIA’s dominance in the Chinese market and could have implications for the company’s financial performance.
In light of the delays and growing competition, NVIDIA faces a critical period in navigating its position in the Chinese AI market and ensuring the successful launch of its new AI GPUs. The company’s ability to address the integration issues and deliver on its commitments will be closely monitored as it seeks to maintain its foothold in one of the world’s largest AI markets.
[News Source: Reuters]